Nvidia Shares Fall as Jensen Huang Steps Down as CEO

Nvidia shares plunged as much as 13% on Thursday, November 12, after co-founder Jensen Huang resigned as chief executive and president. The resignation followed allegations involving multiple extramarital relationships, including one with a woman whom U.S. intelligence officials reportedly suspect of having ties to Chinese espionage.

The semiconductor company's board confirmed that Huang also stepped down as a director, effective immediately. Chief Financial Officer Colette Kress was appointed interim CEO and will keep her finance responsibilities while Nvidia searches for a permanent successor. Reuters reported that the shares were down about 5.5% during Thursday's trading session.

Allegations and the investigation

On November 8, Huang acknowledged having been unfaithful to his wife. The admission followed reports about a relationship with Alice Huang, whom U.S. intelligence officials reportedly suspect of having connections to Chinese intelligence. Those suspicions remain allegations, and the available reporting does not establish that Alice Huang conducted espionage or obtained Nvidia's confidential information.

Nvidia's board started an independent investigation into whether its former CEO had been targeted by a foreign intelligence effort. On November 10, independent directors appointed former acting U.S. Attorney Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to conduct the investigation. On Wednesday, additional allegations involved Kimberly Powell, Nvidia's vice president of healthcare. On Thursday, Reuters reported, citing two people familiar with the matter, that Huang had also maintained a relationship with another Nvidia employee. The publication did not identify the employee, and Nvidia declined to comment on that report.

Nvidia's November 12 announcement did not give a reason for Huang's departure or report any findings from the investigation.

Leadership changes

Kress has been Nvidia's chief financial officer since September 2013. Before joining Nvidia, she held senior finance positions at Cisco and Microsoft. The board also named Harvey C. Jones as its first chair. Jones previously served as chief executive and executive chairman of Synopsys, an electronic design automation company.

Nvidia said its search for a permanent CEO will consider internal and external candidates. The company has not announced a timetable. In the announcement, the new chair expressed confidence that the existing management team could maintain operations, customer commitments and the technology roadmap without interruption.

Nvidia's third-quarter fiscal 2027 results are scheduled for Tuesday, November 17, at about 1:20 p.m. Pacific Time, with an earnings conference call at 2 p.m. The company has not changed its earnings timetable or financial guidance.